DOCSLIB.ORG

Three Essays on Stock Exchange Demutualization and Mergers

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Three Essays on Stock Exchange Demutualization and Mergers THREE ESSAYS ON STOCK EXCHANGE DEMUTUALIZATION AND MERGERS by Kobana Abukari, B.Sc., M.A., M.M.S. A thesis submitted to the Faculty of Graduate and Postdoctoral Affairs in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Management Carleton University Ottawa, Ontario © 2015 Kobana Abukari ABSTRACT The increased competition in the stock exchange industry, intensified by globalization and technological advancements, has motivated a number of changes in the stock exchange industry including demutualization and mergers. This thesis studies stock exchange demutualization and mergers in three separate but related essays. Essay one1 investigates the stock market and product market effects of stock exchange mergers, which have been facilitated by demutualization. We find that shareholders of targets and shareholders of the combined exchanges realize significant positive abnormal returns. Additionally, we find that shareholders of competitors from countries in the same geographical region and competitors at the same stage of development also realize significant abnormal returns. We also find that on the product market, the merging exchanges increase their market share and experience reductions in bid-ask spreads while rivals experience decreased market share and increased bid-ask spreads. We contend that stock exchange mergers have resulted in significant wealth creation on the stock market and substantial value creation on the product market for the merging entities. Essay two examines the market quality implications of stock exchange demutualization. We find that exchanges undertaking demutualization (especially developed stock exchanges) achieve significant reductions in transaction costs and volatility. Although the demutualized exchanges see improvements in market quality, a controlled group of mutual rival stock exchanges have experienced increases in spreads and volatility in the post-demutualization period, and have, as a result, seen deterioration in market quality. Essay three explores the market power consequences of stock exchange mergers. We find that stock exchange mergers have not resulted in the exercise of market power. Instead, the mergers have led to efficiency gains for the merging exchanges and efficiency losses for rivals. Our findings are insensitive to several robustness checks. 1 Essay one has been accepted for publication in the Journal of Financial Studies. ii ACKNOWLEDGEMENTS Undertaking and completing this thesis would have been impossible had it not been for the invaluable help, support and contributions of many people. I would therefore like to take this opportunity to express my sincere thanks and appreciation to the selfless help of the many individuals who contributed immensely to this thesis. I would first and foremost like to thank Professor Isaac Otchere, my thesis supervisor, for his unparalleled guidance, assistance, encouragement and friendship during the entire thesis process. Professor Otchere has diligently and patiently guided me through several drafts and the successful completion of the thesis. Admittedly, without Professor Otchere’s insightful direction, thoughtful suggestions and reasoned answers to my never-ending questions, this thesis would probably not have seen the light of day. Professor Otchere, thank you immensely for your extraordinary help on all facets of the thesis and academic life. I am eternally indebted to you for everything. The thesis has benefited significantly from the invaluable input of my thesis committee. In this regard, I would like to thank Professor Howard Nemiroff for the insightful comments, suggestions and support. I would also like to thank Professor Sana Mohsni for the valuable comments, suggestions and encouragement. My sincere thanks also go to Professor Gady Jacoby for the invaluable input, insights, comments, suggestions and for being on my thesis committee. My thanks also go to Professor Shantanu Dutta for the valued comments, suggestions and for agreeing to be part of the committee. Several other professors have helped me on this journey and I would like to offer my sincere thanks to them. First, I sincerely thank Professor Vijay Jog for his invaluable help and friendship over the years and for guiding me through the comprehensive examination phase. Professor Roland Thomas has tremendously helped me with statistics and modeling over the years. Accept my sincere thanks, Professor Thomas, for all your help. My thanks also go to Professor Alex Ramirez, Professor Uma Kumar and Professor Ernest Kwan for the help and guidance during the PhD program. iii Thanks to Greg Schmidt for the friendship and all the help with my hardware and other computing needs. I would also like to thank my friends and colleagues Anant Rege and Jayant Pandit for help with data transformation. Thanks to Phil Zhu and Erin Oldfold for the friendship and all the help on the thesis. I would like to acknowledge and thank Mr. Herbie Skeete at Mondo Visione for taking it upon himself to collect demutualization dates for stock exchanges for which I could not find the dates. I would also like to thank Ms. Eleanor Penistone at the World Federation of Exchanges and several individuals from a number of stock exchanges for their help with the collection of the demutualization dates. Thanks to Namawu Alolo and Mutako Alolo for the help over the years. Special thanks also go to Sue Khosla and the late Dev Khosla for providing me with a home away from home. Last, but not the least, I would like to thank my family for their love, support and sacrifices. Sincere thanks go to my wife Sahada and to my boys Kataali, Timalma and Wunyiko. Sincere thanks also go to my mom and siblings for always being there for me. I dedicate this thesis to the memory of my beloved dad and sister. I acknowledge the financial support from Carleton University during my PhD studies. iv TABLE OF CONTENTS ABSTRACT ........................................................................................................................ ii ACKNOWLEDGEMENTS ............................................................................................... iii TABLE OF CONTENTS .................................................................................................... v List of Tables ...................................................................................................................... x List of Figures .................................................................................................................... xi 1 Introduction and General Overview ............................................................................ 1 1.1 Introduction ......................................................................................................................... 1 1.2 Overview and Trends in the Stock Exchange Industry ..................................................... 12 References .................................................................................................................................. 21 2 Essay One: Stock and Product Markets Effects of Stock Exchange Mergers ........... 24 Abstract ...................................................................................................................................... 24 2.1 Introduction ....................................................................................................................... 24 2.1.1 Benefits of Study .................................................................................................... 32 2.1.1.1 Contributions of Essay to the Academic Community ......................... 33 2.1.1.2 Importance of Study to Investors ......................................................... 33 2.1.1.3 Corporate Policy Implications of Study .............................................. 33 2.1.2 Organization of Study ............................................................................................ 34 2.2 Literature Review ............................................................................................................. 34 2.2.1 Literature on Stock Exchange Mergers .................................................................. 35 2.2.2 Summary of the Literature on Mergers and Acquisitions ...................................... 39 2.2.3 Concerns raised about Stock Exchange Mergers ................................................... 41 2.3 Research Questions and Hypotheses ................................................................................ 43 2.4 Data and Methodology ...................................................................................................... 48 2.4.1 Data ........................................................................................................................ 48 2.4.2 Methodology .......................................................................................................... 52 2.5 Results ............................................................................................................................... 58 2.5.1 Stock Market Impacts of Mergers .......................................................................... 58 2.5.1.1 Pooled Results of All Mergers............................................................. 58 2.5.1.2 Individual Merger Analysis ................................................................. 63 2.5.1.2.1 Stock Market Performance of Merging Companies ........................ 63 v 2.5.1.2.2 Stock Market Reaction of Competitors to the Merger
Load more

Recommended publications
  • Consolidation and Demutualization: What Strategies Should Exchanges
    OECD, Tokyo Round Table, 11/2003 Consolidation and Demutualization: What Strategies Should Exchanges Adopt in the Future? Ruben Lee Oxford Finance Group Changing Market Structures & the Future of Trading Overview 1) Threatening Factors 2) Self-Sufficiency 3) Linkages 4) Mergers and Takeovers 5) Demutualization 6) Conclusions Changing Market Structures & the Future of Trading 1) Threatening Factors Threatening Factors Main Trends Small Number of Liquid Stocks International Listing & Trading of Domestic Stocks Internalization Regulatory Liberalization Threatening Factors Reasons for Small Number of Liquid Stocks Not Many Companies Privatization Stalled Concentration of Shareholdings Foreign/Private Purchases of Best Companies Changing Market Structures & the Future of Trading 2) Self-Sufficiency Self-Sufficiency Factors Supporting Domestic Stock Exchanges Positive “Network Externality” with Liquidity Competition Not Always Successful Foreign Listing/Trading Complements Local Trading Support of Domestic SMEs Adaptability to Local Conditions Declining IT Costs Self-Sufficiency Current Major Revenue Sources Membership Listing Trading Clearing Settlement Provision of Company News Provision of Quote and Price Data Self-Sufficiency Threats to Revenue Sources Membership - Demutualization Listing – Decline in Value + Competition Trading – Marginal Cost Pricing Clearing – Expensive + Antitrust Scrutiny Settlement – Antitrust Scrutiny Provision of Company News – Competition Provision of Quote and Price Data – Antitrust Scrutiny Changing Market Structures
    [Show full text]
  • State Authority, Economic Governance and the Politics Of
    THE DIVERSITY OF CONVERGENCE: STATE AUTHORITY, ECONOMIC GOVERNANCE AND THE POLITICS OF SECURITIES FINANCE IN CHINA AND INDIA A Dissertation Presented to the Faculty of the Graduate School of Cornell University In Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy by Matthew C.J. Rudolph May 2006 © 2006 Matthew C.J. Rudolph THE DIVERSITY OF CONVERGENCE: STATE AUTHORITY, ECONOMIC GOVERNANCE AND THE POLITICS OF SECURITIES FINANCE IN CHINA AND INDIA Matthew C.J. Rudolph, Ph.D. Cornell University 2006 This dissertation explains contrasting patterns of financial reform in China and India. It focuses on “securitization” – the structural shift from credit-based finance (banking) to securities-based finance (stocks and bonds) – as a politically consequential phenomenon in comparative and international political economy. The analysis revises common theories of the developmental state – theories derived from Gerschenkron’s emphasis on directed-credit and the state’s role in capital formation – in light of securitization’s growing global importance in the last twenty years. Contrasting responses to securitization are explained using international and domestic variables including the profile of a country’s exposure to the world economy, the distributional coalition supporting the state and the prevailing structure of property rights. At a theoretical level, the dissertation highlights the political consequences of securitization for state authority in the economy, arguing that directed-credit; 1) enhanced state discretion in the management of distributional coalitions; 2) facilitated the perpetuity of poorly specified property rights; and 3) mitigated the consequences of the country’s position with respect to external trade and investment. Empirically, the research presented here demonstrates that China and India responded differently to the process of securitization, contrary to the expectations of globalization theories that identify finance as a domain in which international forces favoring convergence should be strongest.
    [Show full text]
  • Demutualization Details
    Demutualization Details 1. American Mutual Life – AmerUs- Indianapolis Life Insurance Company - Central Life Assurance - Central Life Assurance merged with American Mutual in 1994. American Mutual Life was renamed AmerUs Life Insurance Company in 1995. On September 20, 2000, it demutualized to become AmerUs Group. In 2001, the company merged with Indianapolis Life, which had also undergone a demutualization. Approximately 300,000 policyholders and heirs became entitled to receive $452 million in AmerUs Group common stock and $340 million in cash and policy credits. Distribution began on July 31, 2001. Eligible policyholders received a fixed component of 20 AmerUS common shares, as well as a variable component based on policy value. Those who elected to receive cash were compensate $26 per share entitlement. In the first year after the initial public offering, the price of an AmerUS common share increased 99%. The current value of AmerUS Group stock is approximately $45 per share. 2. Anthem Insurance - On July 31, 2002 Anthem Insurance Companies, Inc. completed its conversion from a mutual insurance company to a stock company, and became a wholly owned subsidiary of Anthem, Inc. Eligible policyholders and heirs became entitled to approximately 48 million shares of Anthem, Inc. common stock and cash totaling $2.06 billion. Compensation consisted of a fixed component of 21 Anthem common shares, as well as a variable component based on policy value. The shares were offered to the public at $36. In the first year after the initial public offering, the price of an Anthem common share increased 54%. 3. Equitable Life – Axa - In 1992 the Equitable Life Assurance Society of the United States demutualized and a new parent holding company, the Equitable Companies, was listed on the New York Stock Exchange.
    [Show full text]
  • Distribution of Policyholder Equity in a Demutualization
    Distribution of Policyholder Equity in a Demutualization Introduction This practice note was prepared by a work group organized by the Committee on Life Insurance Financial Reporting of the American Academy of Actuaries. The work group was charged with developing a description of some of the current practices that could be used by actuaries in the United States. The practice notes represent a description of practices believed by the work group to be commonly employed by actuaries in the United States in 1996. However, no representation of completeness is made; other approaches may also be in common use. It should be recognized that the information contained in the practice notes provides guidance, but is not a definitive statement as to what constitutes generally accepted practice in this area. This practice note has not been promulgated by the Actuarial Standards Board or any other authoritative body of the American Academy of Actuaries, nor is it binding on any actuary. Comments are welcome as to the appropriateness of the practice notes, desirability of annual updating, validity of substantive disagreements, etc. This practice note covers some possible answers to a number of different questions that were asked by and posed to members of the work group and that have not otherwise been covered in other practice notes. PN28/L99-03 LIFE PRACTICE NOTE July 1999 Q. How is the total value to be distributed determined? A. In general, this is not an actuarial determination. Instead, the total amount to be distributed to policyholders is generally 100 percent of the market value of the company, excluding any IPO or other capital raising initiatives.
    [Show full text]
  • Discussion Paper on Stock Exchange Demutualization
    Discussion Paper on Stock Exchange Demutualization IOSCO Technical Committee Consultation Draft December, 2000 Consultation Draft International Organization of Securities Commissions Discussion Paper on Stock Exchange Demutualization The Technical Committee (the Committee) of the International Organization of Securities Commissions (IOSCO) has been discussing certain changes that are taking place in the stock exchange industry, particularly the trend towards stock exchanges becoming for- profit enterprises and the increase in competition among exchanges and other electronic networks. The Committee has prepared a discussion paper setting out some of the issues raised and is seeking the views of interested parties on these matters. The discussion paper provides some background to the changes, particularly those regarding the transformation of exchanges into for-profit shareholder-owned companies, which is referred to as demutualization. The paper then canvases issues that these changes raise and notes some responses that have been taken by various IOSCO member jurisdictions. The key regulatory issue is whether these changes will undermine the commitment of resources and capabilities by a stock exchange to effectively fulfil its regulatory and public interest responsibilities at an appropriate standard. The regulatory questions and concerns identified fall into three areas.: a. What conflicts of interest are created or increased where a for-profit entity also performs the regulatory functions that an exchange might have regarding: i) primary market regulation (listing and admission of companies, self- listing); ii) secondary market regulation (trading rules); and iii) member regulation? b. A fair and efficient capital market is a public good. A well-run exchange is a key part of the capital market.
    [Show full text]
  • Tax Impact of Demutualization – the Saga Continues
    Tax Impact of Demutualization – The Saga Continues 2321 N. Loop Drive, Ste 200 Ames, Iowa 50010 www.calt.iastate.edu August 11, 2008 [Updated January 26, 2011, July 11, 2012, February 8, 2013 and March 21, 2013] - by Roger A. McEowen* Overview In mid-March, 2013, a federal district court in Arizona (the court that set the stage for a trial on In August 2008, the U.S. Court of Federal basis computation) delivered its opinion on the Claims ruled against the IRS position of basis computation. assigning zero income tax basis to stock received in an insurance company As the issue continues to unfold in the courts, demutualization.1 Instead, the court ruled that the demutualization issue raises filing issues for basis is to be allocated to the stock of the policy practitioners. up to the amount of the selling price of the stock. The court’s opinion comes as no surprise – they What is Demutualization? ruled in November of 2006 against an IRS motion for summary judgment. That meant the Demutualization is the process through which a case was to go to trial to determine the basis of member-owned company becomes shareholder- the shares. If the court had agreed with the IRS, owned; frequently this is a step toward the initial it would have granted summary judgment. So, public offering (IPO) of a company. Insurance we have known since that time that IRS would companies often have the word "mutual" in their lose the case – the shares would have a positive name, when they are mutually owned by their basis and not all of the gain would be taxable.
    [Show full text]
  • MUTUAL ORGANIZATIONS, MUTUAL SOCIETIES Edith Archambault
    MUTUAL ORGANIZATIONS, MUTUAL SOCIETIES Edith Archambault To cite this version: Edith Archambault. MUTUAL ORGANIZATIONS, MUTUAL SOCIETIES. Regina A. List, Helmut K. Anheier and Stefan Toepler. International Encyclopedia of Civil Society, 2nd edition, Springer, In press. halshs-02990281 HAL Id: halshs-02990281 https://halshs.archives-ouvertes.fr/halshs-02990281 Submitted on 5 Nov 2020 HAL is a multi-disciplinary open access L’archive ouverte pluridisciplinaire HAL, est archive for the deposit and dissemination of sci- destinée au dépôt et à la diffusion de documents entific research documents, whether they are pub- scientifiques de niveau recherche, publiés ou non, lished or not. The documents may come from émanant des établissements d’enseignement et de teaching and research institutions in France or recherche français ou étrangers, des laboratoires abroad, or from public or private research centers. publics ou privés. MUTUAL ORGANIZATIONS, MUTUAL SOCIETIES By Edith Archambault, Centre d’économie de la Sorbonne Université Paris1 Panthéon-Sorbonne SYNONYM Mutuals KEY WORDS Mutual Benefit Societies Mutual Insurance Companies Social economy Demutualization Welfare state Democratic governance Solidarity between members Limited profit sharing DEFINITION According to a very large definition of the European Commission (mutual organizations/societies “are voluntary groups of persons (natural or legal) whose purpose is primarily to meet the needs of their members rather than achieve a return on investment”. This large definition includes self-help groups, friendly societies, cooperatives, mutual insurance companies, mutual benefit societies, credit unions, building societies, savings and loans associations, micro-credit, burial associations, Freemasons… (European Commission, 20 Hereafter, it is a more restricted definition that is used, relying on principles shared by most mutuals in Europe, the region where they are the most widespread.
    [Show full text]
  • Turning Seats Into Shares: Causes and Implications of Demutualization of Stock and Futures Exchanges Roberta S
    Hastings Law Journal Volume 53 | Issue 2 Article 2 1-2002 Turning Seats into Shares: Causes and Implications of Demutualization of Stock and Futures Exchanges Roberta S. Karmel Follow this and additional works at: https://repository.uchastings.edu/hastings_law_journal Part of the Law Commons Recommended Citation Roberta S. Karmel, Turning Seats into Shares: Causes and Implications of Demutualization of Stock and Futures Exchanges, 53 Hastings L.J. 367 (2002). Available at: https://repository.uchastings.edu/hastings_law_journal/vol53/iss2/2 This Article is brought to you for free and open access by the Law Journals at UC Hastings Scholarship Repository. It has been accepted for inclusion in Hastings Law Journal by an authorized editor of UC Hastings Scholarship Repository. For more information, please contact wangangela@uchastings.edu. Turning Seats Into Shares: Causes and Implications of Demutualization of Stock and Futures Exchanges by ROBERTA S. KARMEL* Introduction .................................................................................. 368 I. The Development of ECNs, ATSs, and Their Regulation .................... 370 A. Drivers for Electronic Exchanges and Demutualization ................ 370 B . D ecim alization ..................................................................................... 373 C. Regulation A TS ................................................................................... 375 D. SuperMontage and NYSE Direct ...................................................... 381 U. Antitrust Issues ..........................................................................................
    [Show full text]
  • Demutualization Booklet: Part
    POLICYHOLDER INFORMATION BOOKLET PART ONE THIS PART ONE CONTAINS THE FOLLOWING MATERIAL ABOUT PRINCIPAL MUTUAL HOLDING COMPANY’S PLAN TO CONVERT TO A STOCK COMPANY: Notice of Special Meeting of Members to consider Summary of Certain the Plan of Conversion Key Features of the demutualization, for Notice from the Iowa Division of Insurance providing basic information about information on the public hearing the demutualization and how you can participate More detailed information about the demutualization Plan of Conversion, the legal document describing the demutualization PRINCIPAL MUTUAL HOLDING COMPANY 711 High Street Des Moines, Iowa 50392 Notice of Special Meeting of Members To be Held July 24, 2001 To the Members of Principal Mutual Holding Company: You are a Member of Principal Mutual Holding Company because you are a policyholder of Principal Life Insurance Company (""Principal Life''). You are also a Member if you were issued a Policy on or before April 8, 1980 and you transferred ownership rights of the Policy on or before April 8, 1980, so long as the Policy remains In Force. You are hereby notiÑed that a special meeting of Members of Principal Mutual Holding Company, a mutual insurance holding company organized pursuant to Section 521A.14(1) of Title XIII and Chapter 491 of Title XII of the Code of Iowa (the ""MIHC''), will be held at the MIHC's oÇces in the Auditorium of the Corporate One building, 711 High Street, Des Moines, Iowa 50392, on July 24, 2001, at 9:00 a.m., Central Daylight Time, and any adjournment thereof. The special meeting of Members will be held for the purpose of considering and voting upon the following proposal: To approve the Plan of Conversion of the MIHC and the transactions contemplated in the Demutualization, including: 1.
    [Show full text]
  • Economic Patriotism and the Paris Stock Exchange Helen Callaghan & Paul Lagneau-Ymonet Published Online: 08 Feb 2012
    This article was downloaded by: [MPI Max-Planck-institute Fur Gesellschaftsforschung] On: 01 August 2013, At: 04:43 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK Journal of European Public Policy Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/rjpp20 The phantom of Palais Brongniart: economic patriotism and the Paris Stock Exchange Helen Callaghan & Paul Lagneau-Ymonet Published online: 08 Feb 2012. To cite this article: Helen Callaghan & Paul Lagneau-Ymonet (2012) The phantom of Palais Brongniart: economic patriotism and the Paris Stock Exchange, Journal of European Public Policy, 19:3, 388-404, DOI: 10.1080/13501763.2011.640788 To link to this article: http://dx.doi.org/10.1080/13501763.2011.640788 PLEASE SCROLL DOWN FOR ARTICLE Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Any opinions and views expressed in this publication are the opinions and views of the authors, and are not the views of or endorsed by Taylor & Francis. The accuracy of the Content should not be relied upon and should be independently verified with primary sources of information. Taylor and Francis shall not be liable for any losses, actions, claims, proceedings, demands, costs, expenses, damages, and other liabilities whatsoever or howsoever caused arising directly or indirectly in connection with, in relation to or arising out of the use of the Content.
    [Show full text]
  • The Economics of Organization Structure Changes: a Us Perspective on Demutualization
    Annals of Public and Cooperative Economics 75:4 2004 pp. 575–594 THE ECONOMICS OF ORGANIZATION STRUCTURE CHANGES: A US PERSPECTIVE ON DEMUTUALIZATION by Fabio R. CHADDAD* Ibmec Business School, Brazil and Michael L. COOK University of Missouri Received July 2003; final version accepted June 2004 ABSTRACT**: The objective of this study is to contribute to the current debate on demutualization from a US perspective. We document waves of demutualization and review the empirical literature examining the economics of organizational structure changes that have occurred in the US savings and loan and insur- ance industries since the 1980s. Based on the review of the litera- ture on the economics of conversions, we generate a set of general observations that might inform private and public policy perspec- tives on the future role of user owned and controlled organizations in market economies. In doing so, the paper may serve as a plat- form for further discussion among scholars, policymakers, practi- tioners, and cooperative leaders in their quest to understand and affect the ongoing process of demutualization. 1 Introduction In many developed countries, industries are characterized by a mixed structure of mutual (or cooperative) and corporate forms. For example, mutual savings banks, mutual savings and loan (S&L) * Email: fabiorc@ibmec.br. This paper was written while Dr. Chaddad was assistant professor at Washington State University. ** Re´sume´ en fin d’article; Zusammenfassung am Ende des Artikels; resumen al fin del artı´culo. #CIRIEC 2004. Published by Blackwell Publishing Ltd, 9600 Garsington Road, Oxford OX4 2DQ, UK and 350 Main Street, Malden, MA 02148, USA 576 F.
    [Show full text]
  • Emerging Asian Regionalism: a Partnership for Shared Prosperity Mandaluyong City, Phil.: Asian Development Bank, 2008
    Forew ord EMERGING ASIAN REGIONALISM A Partnership for Shared Prosperity i Emerging Asian Regionalism © 2008 Asian Development Bank All rights reserved. Published 2008. Printed in the Philippines. Printed using vegetable oil-based inks on recycled paper manufactured through a totally chlorine-free process. Cataloging-In-Publication Data Publication Stock No. 060808 ISBN 978-971-561-669-0 Emerging Asian regionalism: A partnership for shared prosperity Mandaluyong City, Phil.: Asian Development Bank, 2008. 1. Regionalism 2. Subregional cooperation 3. Economic development 4. Asia I. Asian Development Bank. The views expressed in this book are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. Use of the term “country” does not imply any judgment by the authors or ADB as to the legal or other status of any territorial entity. The symbol “$” represents the United States dollar unless otherwise indicated. “Asia” refers only to ADB’s Asian member economies. The 16 “integrating Asian economies” are Brunei Darussalam; Cambodia; People’s Republic of China; Hong Kong, China; India; Indonesia; Japan; Republic of Korea; Lao People’s Democratic Republic; Malaysia; Myanmar; Philippines; Singapore; Taipei,China; Thailand; and Viet Nam. ADB encourages printing or copying information exclusively for personal and noncommercial use with proper acknowledgement of ADB. Users are restricted from reselling, redistributing, or creating derivative works for commercial purposes without the express, written consent of ADB.
    [Show full text]